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Pedro Gonçalves

BBC News - Brussels plans European banking union from 2013 - 0 views

  • A single regulator to oversee banks across all 27 European Union states could be in place as early as 2013 according to the European Commission. A controversial new bank bailout fund financed by a tax on financial institutions is also planned. The proposal includes an EU-wide deposit guarantee scheme to protect savers in the event of a bank collapse.
  • European banks are the biggest lenders to EU governments. The guarantee scheme would reduce banks' risk from lending to indebted governments such as Portugal. So indebted governments could benefit from artificially low borrowing costs by piggy-backing loan guarantees from Germany without addressing their underlying economic problems. For that reason, Sabine Lautenschlaeger insists that banking union should go hand-in-hand with fiscal union to ensure all EU governments adhere to strict budget policies. And that insistence could stall the whole banking union process.
  • Mr Barroso's plan would create a bank rescue fund from levies on financial institutions across the EU, effectively reducing company profits and shareholder dividends. This could also remove the possibility of one set of taxpayers, for example, in Germany, having to bail out savers in another country such as Spain.
Pedro Gonçalves

Germany's Age of Anxiety - By Roger Boyes | Foreign Policy - 0 views

  • Certainly Sarrazin's book is being hailed as the work of a truth-teller: He sold 800,000 copies in three weeks this summer and his public readings are crammed with fans. I attended one the other day and was shocked to see how a teenage schoolgirl was shouted down and hustled out of the room by security guards for mildly questioning the Sarrazin thesis. Merkel, sensing danger, was quick to condemn at least one passage that seemed to suggest that there was a "Jewish gene."
  • This is not just about a book. Germany is beginning to realize that there is a gap in the party political spectrum to the right of Merkel's Christian Democrats, but to the left of the virulently undemocratic neo-Nazis. Opinion polls show that a party inspired by Sarrazin's thesis -- a party that would be critical of Islamic expansion in Europe and that seeks to control immigration -- could win 15 percent of the vote, thus seriously shaking up the German political system.
  • While Merkel reversed course to officially bury multiculturalism, one of her primary coalition partners, Horst Seehofer -- the leader of the Bavarian Christian Social Union -- called for a wholesale stop to immigration.
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  • Germans are restless, and they increasingly believe their political class is tone-deaf. Popular resentment is running high, and there is a powerful head of steam behind the emerging anti-Islam movement.
Argos Media

Clinton urges Nato to bring Russia back in from the cold | World news | guardian.co.uk - 0 views

  • The Obama administration moved today to resume high-level relations with Moscow when Hillary Clinton led a western push to revive contacts between Russia and Nato.Making her European debut as secretary of state, Clinton told a meeting of Nato foreign ministers that Washington wanted "a fresh start" in relations with Moscow.
  • "I don't think you punish Russia by stopping conversation with them," she said, adding that there could be benefits to the better relationship. "We not only can but must co-operate with Russia."
  • The meeting in Brussels agreed to reinstate the work of the Nato-Russia council, a consultative body that was frozen last year in protest at Moscow's invasion and partition of Georgia.
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  • Diplomats said the accord and the talks in Geneva tomorrow could pave the way for the Obama administration to press ahead with a common agenda with Russia which would entail talks on nuclear arms control and on Russian co-operation with US policy on Afghanistan and Iran.The new White House team are clearly hoping to bypass the prime minister and former president, Vladimir Putin, and focus its diplomacy on President Dmitry Medvedev.
  • For any big shifts in the Russian-­American relationship, Moscow would insist on the shelving of the Pentagon's missile shield project in Poland and the Czech Republic and a freeze in the ­prospects for Ukraine and Georgia joining Nato.
  • The US and Germany tabled a joint proposal for yesterday's Nato meeting, leaving the contentious issue of Ukraine's and Georgia's membership chances open and urging greater co-operation with Russia "as equal partners in areas of common interest". It went on: "These include: Afghanistan, counter-terrorism, counter-piracy, counter-narcotics, non-proliferation, arms control and other issues."
  • "Russia is a global player. Not talking to them is not an option," said Jaap de Hoop Scheffer, the Nato secretary-general.
  • In the first big foreign policy speech from the Obama administration, in Munich last month, the vice-president, Joe Biden, said the White House wanted to "press the reset button" in relations with Moscow after years of dangerous drift.
  • The agreement today was held up for several hours by Lithuania, which strongly opposed the resumption of dialogue with the Kremlin.France and Germany, keen to develop close links with Moscow, threatened in turn to cancel scheduled meetings last night between Nato and Ukraine and Georgia if "the opening with Russia" was not given a green light, diplomats said.
Argos Media

Mission Impossible: Geman Elite Troop Abandons Plan to Free Pirate Hostages - SPIEGEL O... - 0 views

  • Officials in Berlin now face the question of what went wrong. The operation lasted for three weeks, at a cost to the German treasury well in excess of the combined ransom payments of recent years. The failed campaign demonstrated that without improved logistics and available aircraft and ships, the GSG-9 is incapable of operating swiftly enough in comparable situations.
Argos Media

Mission Impossible: Geman Elite Troop Abandons Plan to Free Pirate Hostages - SPIEGEL O... - 0 views

  • For the team at the Foreign Ministry, preventing the pirates from reaching Harardere was of paramount importance, because they would likely receive reinforcement there. There was no time to be wasted, and for Silberberg, the situation was clear: "As long as there are only five pirates on board, we can attack and bring a speedy end to the matter." Hanning's staff assured him that the GSG-9 team could be ready for deployment at the nearest secure port, Mombasa, within 96 hours -- a very short time frame for an operation of this magnitude. But, as it turned out, it would take the pirates only 24 hours to reach Harardere.
Argos Media

Opinion: Torturing for America - SPIEGEL ONLINE - News - International - 0 views

  • The torture virus eventually infected the rest of the world, including Europe and even Germany. The double standard employed by German counterterrorism personnel when confronted with the torture practices of their US allies becomes clear in a remark Ernst Uhrlau, the head of the BND, Germany's foreign intelligence agency, made in a 2007 interview with SPIEGEL: "US officials have (…) explained to us that the information they gained from various interrogations worldwide has been instrumental in preventing further attacks and uncovering terrorist structures. So we have benefited from all this in the sense of preventing attacks and understanding the structures of the network."
  • German Interior Minister Wolfgang Schäuble also found it difficult to distance himself from the use of dirty information, saying that it was perfectly legitimate for German officials to use information foreign intelligence agencies had obtained through torture -- after all, that helped prevent terror attacks. At the same time, Schäuble was apparently unwilling to consider the possibility that this might also apply to American intelligence agencies: "The president has made it clear that there is no torture. I have no reason to question that."
  • The entire world looked the other way when the United States committed a crime that the world had previously committed itself to outlaw and punish.
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  • Under the 1984 United Nations Convention against Torture, ratified by most countries in the world, each state pledges to impose drastic penalties for the cruel treatment of prisoners -- and to ensure that not only those issuing the orders, but also the torturers themselves, are brought to justice.
  • The cruel and degrading treatment of prisoners is also banned under the Geneva Conventions. Today even US legal experts no longer question that the Geneva Conventions also apply in the war against al-Qaida and other terrorist groups. The Geneva Conventions obligate all nations to try torturers and those who issue their orders, if apprehended, or to extradite them to a country willing to do so.
  • The Bushies knew perfectly well why they withdrew the US signature from the International Criminal Court (ICC) statute. If the United States had subjected itself to the ICC statute, the court's unflinching prosecutor, Luis Moreno-Ocampo, would undoubtedly have petitioned for the issuance of arrest warrants against Bush and his cohorts long ago.
Argos Media

Polish Reactions to SPIEGEL Cover Story: A Wave of Outrage - SPIEGEL ONLINE - News - In... - 0 views

  • Polish media and politicians have sharply criticized this week's SPIEGEL cover story about Hitler's European helpers outside of Germany. They believe the article is part of an attempt by Germans to foist guilt for its own Nazi crimes off on others.
  • "DER SPIEGEL is accusing Poland and other nations of having assisted in the Holocaust," claims the daily Polska. In the future, the polemic continues, SPIEGEL could come to the conclusion that the Jews, too, assisted -- after all, there were Jewish police in the ghettos who were forced by the Nazis to round up men, women and children for the transports to the concentration camps.
  • t is particularly hurtful to Poles that SPIEGEL also reported about the so-called "Szmalcownicy," Poles who revealed their Jewish neighbors to the Nazis or extorted money from Jewish families in hiding in exchange for silence. Sometimes they even did both.
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  • This week, though, Kaczynski has found his old form again -- with the unexpected help of SPIEGEL. "The Germans are attempting to shake off the guilt for a giant crime," he said, commenting on the latest SPIEGEL cover story, " The Dark Continent: Hitler's European Holocaust Helpers."
Pedro Gonçalves

Culture Wars: An Anti-Semite for UNESCO? - SPIEGEL ONLINE - News - International - 0 views

  •   Print  | E-Mail  | Share  | Feedback 05/26/2009 Digg Stumble Upon Reddit Facebook Del.icio.us Fark Yahoo Newsvine Google MySpace   Font: CULTURE WARS An Anti-Semite for UNESCO? Egypt's Culture Minister Farouk Hosni is a leading candidate to take over UNESCO in the fall. An alliance of intellectuals and Jewish groups from France, Germany and Israel are up in arms over the possibility due to remarks made by him perceived to be anti-Israeli.
  • Egypt's Culture Minister Farouk Hosni is a leading candidate to take over UNESCO in the fall. An alliance of intellectuals and Jewish groups from France, Germany and Israel are up in arms over the possibility due to remarks made by him perceived to be anti-Israeli.
  • Hosni, an artist by trade, has been Egypt's Culture Minister since 1987. He is known for being a liberal voice in Egyptian politics, opposing the veil for Egyptian women for example. But he has also made anti-Israeli statements in the past. Last year, he said he would "burn Israeli books in Egyptian libraries."
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  • According to Israel's Haaretz newspaper, the issue got more complicated after news leaked that Israeli Prime Minister Benjamin Netanyahu had agreed to support Hosni's candidacy in a secret deal with Egyptian President Hosni Mubarak.
Pedro Gonçalves

Iran considers expelling Western diplomats - Haaretz - Israel News - 0 views

  • "Spreading anarchy and vandalism by Western powers and also Western media...these are not at all accepted," Foreign Ministry spokesman Hassan Qashqavi told a news conference in comments translated by Iran's English-language Press TV. "In many European countries and also in America, instead of inviting people to resort to democratic mechanisms...they support parts of the rioters," he said. Advertisement Asked whether expelling some foreign ambassadors was an option, Qashqavi said he would neither confirm nor deny this as Iran was still studying possible action.
  • He also said Iranian diplomatic missions had been damaged during election-related protests in other countries, including Germany. "We don't think that anybody would be able to attack a diplomatic center without the government and local police being informed," he said.
  • The European Union said Sunday that Iran has summoned diplomats from EU member countries to protest what it says is interference in its internal affairs.
Pedro Gonçalves

SPIEGEL Interview with Henry Kissinger: 'Obama Is Like a Chess Player' - SPIEGEL ONLINE... - 0 views

  • SPIEGEL: Do you think it was helpful for Obama to deliver a speech to the Islamic world in Cairo? Or has he created a lot of illusions about what politics can deliver? Kissinger: Obama is like a chess player who is playing simultaneous chess and has opened his game with an unusual opening. Now he's got to play his hand as he plays his various counterparts. We haven't gotten beyond the opening game move yet. I have no quarrel with the opening move.
  • Kissinger: It is also too early to say that. If what he wants to do is convey to the Islamic world that America has an open attitude to dialogue and is not determined on physical confrontation as its only strategy, then it can play a very useful role. If it were to be continued on the belief that every crisis can be managed by a philosophical speech, then he will run into Wilsonian problems.
  • SPIEGEL: Obama did not only hold a speech. At the same time, he placed pressure on Israel to stop building settlements in the West Bank and to recognize an independent Palestinian state. Kissinger: The outcome can only be a two-state solution, and there seems to be substantial agreement on the borders of such a state.
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  • Kissinger: The important thing after military victory is to deal with the defeated nation in a generous way. SPIEGEL: And with this you mean not to subdue the defeated nation? Kissinger: You can either weaken a defeated nation to a point where its convictions no longer matter and you can impose anything you wish on it, or you have to bring it back into the international system. From the point of view from Versailles, the treaty was too lenient with respect to holding Germany down, and it was too tough to bring Germany into the new system. So it failed on both grounds.
  • SPIEGEL: What would a wise winner do? Kissinger: A wise victor will attempt to bring the defeated nation into the international system. A wise negotiator will try to find a basis on which the agreement will want to be maintained. When one reaches a point where neither of these possibilities exist, then one has to go either to increase pressure or to isolation of the adversary or maybe do both.
  • SPIEGEL: Were the Western countries wise in respect to their dealings with the former Soviet Union after their implosion? Kissinger: There was too much triumphalism on the western side. There was too much description of the Soviets as defeated in a Cold War and maybe a certain amount of arrogance. SPIEGEL: Not only towards Russia? Kissinger: In other situations as well.
  • Iran is a relatively weak and small country that has inherent limits to its capabilities. The relationship of China with the rest of the world is a lot more important in historic terms than the Iranian issues by themselves.
Argos Media

German Environment Minister: 'We Must Discuss Climate Change's Devastating Consequences... - 0 views

  • we have no time to lose. Let's hope that people will have realized by December that the financial crisis is a prime example of unsustainable economies, and that we should protect the planet from suffering a similar blow to the one currently afflicting the global economy. I'm actually quite optimistic that investments that save resources, save energy and are green, while at the same time making life less costly and our economy more competitive will pick up speed tremendously.
  • SPIEGEL: There was little evidence of that at the G-20 summit. Gabriel: At least the participants moved a passage on stabilizing the economy in an environmentally responsible way to the front of their closing statement. Half a year ago, those words would have been inconceivable. But there was a lack of concretion, and that was weak. The G-20 will have to correct this deficiency before Copenhagen, or things will be more than difficult.
  • SPIEGEL: Doesn't an environment minister have to scrutinize the consumption behavior and lifestyle of citizens, even at the risk of not making any friends in the process? Gabriel: Should I come up with something like (former Environment Minister) Jürgen Trittin's can deposit program, which led to a boom in disposable packaging? Now there's a case of maximum unpopularity coupled with maximum damage! I also don't think much of puritanically suggesting to people that they exercise restraint. That doesn't cause the auto industry to modify its engines. And we didn't solve the waste problems of the 1980s with non-consumption, but by charging a price for waste and developing ways to avoid waste or recycle. We consume more today than we did then, and yet we produce drastically less waste. The limits of growth as a political message have failed worldwide.
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  • The issue is not less growth, but the right kind of growth. Either our children will pay a very high price, because they will have run out of fish and the rainforests will be gone, or we are prepared not to ignore the costs today and accept somewhat higher prices. This is really the issue at the climate protection talks. Although the heading is climate protection, there is an unofficial agenda that reflects the economic interests of those living today and the economic interests of those want to live better lives tomorrow. We have to begin talking about this openly instead of covering it up.
  • SPIEGEL: Have you thought about how your ministry could be restructured in the future? Gabriel: I think a Ministry of Climate, Energy and the Environment would be the right thing. Energy and environmental policy belong together, under one roof.
Argos Media

SPIEGEL Interview with Iranian President Ahmadinejad: 'We Are Neither Obstinate nor Gul... - 0 views

  • Why do you not at least temporarily suspend uranium enrichment, thereby laying the groundwork for the commencement of serious negotiations?
  • Ahmadinejad: These discussions are outdated. The time for that is over. The 118 members of the Non-Aligned Movement support us unanimously, as do the 57 member states of the Organization of the Islamic Conference. If we eliminate duplication between the two groups, we have 125 countries that are on our side. If a few countries are opposed to us, you certainly cannot claim that this is the entire world.
  • The composition of the Security Council and the veto of its five permanent members are consequences of World War II, which ended 60 years ago. Must the victorious powers dominate mankind for evermore, and must they constitute the world government? The composition of the Security Council must be changed.
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  • SPIEGEL: You are referring to India, Germany, South Africa? Should Iran also be a permanent member of the Security Council? Ahmadinejad: If things were done fairly in the world, Iran would also have to be a member of the Security Council. We do not accept the notion that a handful of countries see themselves as the masters of the world.
  • Does this mean that the International Atomic Energy Agency (IAEA) and its director general, Mohamed ElBaradei, can save themselves the trouble of holding talks with Iran? Will uranium enrichment not be discontinued under any circumstances? Ahmadinejad: I believe that they already reached this conclusion in Vienna. Why did we become a member of the IAEA? It was so that we could use nuclear energy for peaceful purposes. When a country becomes a member of an international organization, must it only do its homework or is it also entitled to rights? What assistance have we received from the IAEA? Did it provide us with any know-how or knowledge? No. But according to its statutes, it would have been required to do so. Instead, it simply executed instructions coming from America.
  • We say: We are willing to cooperate under fair conditions. The same conditions, and on a level playing field.
  • We have no interest in building a nuclear weapon.
  • The second observation concerns the warmongers and Zionists … SPIEGEL: … your eternal enemy of convenience … Ahmadinejad: …whose existence thrives on tension and who have become rich through war.
  • Palestinians should be allowed to decide their own future in a free referendum.
  • the unnatural Zionist state
  • Do you believe that the German people support the Zionist regime? Do you believe that a referendum could be held in Germany on this question? If you did allow such a referendum to take place, you would discover that the German people hate the Zionist regime.
  • Ahmadinejad: I do not believe that the European countries would have been as indulgent if only one-hundredth of the crimes that the Zionist regime has committed in Gaza had happened somewhere in Europe. Why on earth do the European governments support this regime?
  • Ahmadinejad: Allow me to set things straight, both legally and politically. At least 10 members of the UN Security Council… SPIEGEL: …which includes, in addition to the permanent members, US, Russia, Great Britain, France and China, 10 elected representatives based on a rotating principle… Ahmadinejad: …have told us that they only voted against us under American and British pressure. Many have said so in this very room. What value is there to consent under pressure? We consider this to be legally irrelevant. Politically speaking, we believe that this is not the way to run the world. All peoples must be respected, and they must all be granted the same rights.
Argos Media

BBC NEWS | Europe | Boycott-hit racism forum begins - 0 views

  • A controversial UN conference on racism has begun in Geneva, amid concern it could become an anti-Semitic forum. Several countries - including the US, Australia and Germany - are boycotting it but France and the UK are attending.
  • Iran's president, who has denied the Holocaust, is to address the meeting, a follow-up to a 2001 UN forum in Durban that ended in acrimony.
  • many Western countries are uncomfortable with the address by Iranian President Mahmoud Ahmadinejad, the only major leader to accept an invitation to the forum.
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  • The UN's first conference on racism in the South African city of Durban eight years ago was marred by anti-Semitic comments from some non-governmental organisations. There was also an unsuccessful attempt by some states to equate Zionism with racism.
  • His presence at a conference against racism has caused horror in Israel, and nervousness within the United Nations, says the BBC's Imogen Foulkes in Geneva.
  • The draft final declaration, which has been causing much heated debate, has been watered down to remove all references to Israel and the Middle East. However, at the request of Middle East nations, it still contains a clause about the incitement of religious hatred, which many Western countries see as a curtailment of free speech.
  • US President Barack Obama said anti-Israeli language in the draft final communique that was "oftentimes completely hypocritical and counterproductive" had been the red line for his administration.
  • EU states are split on whether to follow the US boycott. Germany has become the latest country to announce it would not be attending, joining others including Canada, Israel, Italy, the Netherlands and New Zealand.
Argos Media

Agreement Reached on Rasmussen: Obama Saves NATO Governments from Summit Shame - SPIEGE... - 0 views

  • By Friday evening, when Turkey repeated its threat to veto any decision to appoint Rasmussen as the next secretary general, it became clear that a NATO summit being held to celebrate its 60th anniversary threatened to end in fiasco.
  • But Turkey had been the only country that objected to Rasmussen's selection to head the trans-Atlantic military alliance. Detractors of the Dane, led by Turkish Prime Minister Recep Tayyip Erdogan, felt Rasmussen was unsuitable for the post because he had been unyielding in the dispute over the Muhammad caricatures and preferred to defend the right to free speech rather than apologize.
  • The remaining 27 NATO members, especially Germany, France and the United States, all offered their clear backing for Rasmussen, but the summit remained a suspenseful one. The reason being that one of the many peculiar rules of the alliance is that the secretary general must be unanimously elected, meaning that Turkey actually did have the power to reject the choice.
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  • According to diplomatic sources, the decisive impulse came from the US. Obama spoke with Gül and telephoned with Erdogan -- and was able to assuage their concerns. Erdogan said that Obama offered him certain unnamed guarantees -- allegedly they had to do with the Denmark-based Kurdish broadcaster Roj TV as well as with top NATO posts for Turkey.
  • Once the drama had come to an end, Rasmussen immediately sought to ease the tension, saying he would do "his utmost" for the partnership with Turkey. Relations with the Muslim world, he said, were decisive, and he even promised a review of the television station Roj TV -- a pledge apparently made at the request of Erdogan. Previously, Rasmussen had been unwilling to stop broadcasts in his country of the satellite TV channel.
Argos Media

SPIEGEL Interview with Economist Joseph Stiglitz: Government Stimulus Plans are 'Not En... - 0 views

  • SPIEGEL: The economic crisis has severely damaged the economic model of finance-driven turbo-capitalism. Will this lead to a renaissance in the state economy? Stiglitz: I don't think so. The fall of the Berlin Wall really was a strong message that communism does not work as an economic system. The collapse of Lehman Brothers on September 15th again showed that unbridled capitalism doesn't work either.
  • SPIEGEL: Could authoritarian systems like in China be the future? Stiglitz: Besides the two extremes of communism and capitalism, there are alternatives, such as Scandinavia or Germany. The Chinese model has succeeded very well for their people, but at the price of democratic rights. The German social model, however, has worked very well. It could also be a model for the US administration.
  • SPIEGEL: The opposition in Germany is already complaining about government stimulus funding for infrastructure in developing countries. Stiglitz: All the more reason for governments to persuade their people that it is in our own interest that all national economies grow. If banks in Eastern Europe collapse, it weakens Western European banks and then American financial institutions. If we are to learn one thing from the economic crisis, it's this: Globalization can't be stopped. It has to be managed or else the global economy won't work.
Argos Media

Timothy Garton Ash: The G20 summit in London will be missing one great power. Europe | ... - 0 views

  • When President Barack Obama comes to London next week, he will find one great power missing at the world's summit table: Europe. Five of the 20 leaders at the G20 meeting will be Europeans, representing France, Germany, Britain, Italy and the EU, but the whole will be less than the sum of its parts. There will be plenty of Europeans but no Europe.
  • Obama's European trip, which continues to the Nato summit and then an EU-US meeting in Prague, will also be about foreign and security policy. Here, Europe is even less of a single player. To be fair, Europeans have got their act together on diplomacy with Iran, though it remains to be seen whether that European unity would survive an American request for more economic sanctions on Tehran. On most of the other big issues on Obama's agenda - Afghanistan, Pakistan, relations with Russia and China, nuclear proliferation - there is no Europe. There are individual European countries.
  • Unlike George W Bush at the beginning of his first term, President Obama is both ideologically and pragmatically predisposed to work with a stronger, more united Europe. But even he can't work with something that doesn't exist.
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  • Looking back, one begins to see that Europe has spent the best part of 10 years failing to get its act together. A decade that began with ambitious plans for a European constitution ends with the fate of a much more modest Lisbon treaty hanging on a dubiously democratic attempt to persuade the Irish to alter their "no" to a "yes". If we had spent half the time we wasted in that constitutional debate simply co-ordinating our actions better, under the existing treaties, we would be in a better position today. Europe talks the talk but does not walk the walk.
  • Every EU member state bears some responsibility for this shambles, as does the institutional leadership in Brussels. But its three largest member states are especially to blame.
  • It's nothing new that France and Britain are behaving like France and Britain. Plus ça change, plus c'est la même chose. What's new is that Germany is now behaving like France and Britain.
  • In this constellation, neither the Americans nor the Chinese see Europe as a single, coherent partner. The G20 seems to be gaining acceptance as a new institutional framework for global collective action, at least in financial and economic policy. But it is just that: a framework. To make such frameworks work, you always need, behind the scenes, a strategic coalition of major players. Increasingly, here in Beijing as well as in Washington, one hears talk of a "G2" inside the G20. G2 means the US and China. Yet it's the EU, not China, that has an economy the size of the United States'. Especially in economic policy, the strategic coalition should be G3. But where is Europe?
Argos Media

European Leader Assails American Stimulus Plan - NYTimes.com - 0 views

  • The European Union’s crisis of leadership during the economic downturn was thrown into sharp relief on Wednesday, as the current president of the 27-nation bloc labeled President Obama’s emergency stimulus package “a way to hell” that will “undermine the stability of the global financial market.”
  • What made the situation even more trying for those who hope that the European Union might find a common voice in this crisis was that Mr. Topolanek’s own governing coalition collapsed on Tuesday. The Czech opposition party, which favors bigger increases in domestic spending during the slump, won a no-confidence vote on his leadership.
  • Despite widespread fears that European nations could prolong the current recession unless they act in concert with one another and the United States, the slump has highlighted differences over deficit spending, interest rates and possible bailouts for new union members in the East. There are few signs that the alliance is developing the political leadership to match its economic weight.Britain, like the United States, has undertaken an aggressive fiscal stimulus and slashed interest rates. But Germany and France have opposed calls for further large stimulus packages and even greater deficit spending, while the European Central Bank has kept interest rates higher than they are in the United States and Britain. Germany and even some Central European countries opposed calls by Hungary for the creation of a single rescue fund for heavily indebted countries in Eastern Europe.
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  • Mr. Topolanek’s comments during a speech to the European Parliament underscored unresolved differences.
  • Mr. Topolanek’s remarks were considered impolitic, with the German leader of the Socialist group in the European Parliament, Martin Schulz, telling him, “You have not understood what the task of the E.U. presidency is,” and describing his comments as “not the level on which the E.U. ought to be operating with the United States.”
  • A Czech spokesman said that Mr. Topolanek meant to say that the European Union would be on the way to hell if it increased its own spending too much, rather than predicting that the United States was doomed.
  • Mr. Topolanek is not alone in his concern that Mr. Obama’s stimulus package, which will push the United States budget deficit this year to 10 percent or more of gross domestic product, will put a huge strain on global financial markets. German officials have also criticized the evolving American program, and many other European nations have declined to create fiscal stimulus programs anywhere near as large as that of the United States, arguing that too much extra money will lead quickly to inflation.
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